WINCHESTER – Additional funding from the provincial government may significantly increase the available money for the redevelopment of Dundas Manor in Winchester, should shovels get into the ground soon.
Originally announced in March 2020, the $32-million redevelopment and expansion of the 40-year old non-profit long-term care home has seen development costs skyrocket due to inflation.
When provincial funding was was announced in March 2020, ministry officials were unable to confirm how much provincial funding. Local contributions were estimated to be $11-million.
The Construction Funding Subsidy from the Ministry of Long-Term Care is calculated on a per-bed daily rate, multiplied by 25 years. At the time of the original announcement, the rate was between $20.53 and $23.78 per day, depending on the size and market the LTC applying for funding was in. For Dundas Manor, that set the provincial funding around $23.98 million. That amount was only confirmed by the Ministry of Long-Term Care this week.
Jake Roseman, spokesperson for Minister of Long-Term Care Paul Calandra, confirmed to The Leader that certain non-profit LTC projects qualify for an additional Construction Funding Subsidy to deal with the high inflation that construction projects have faced in the past two years.
For Dundas Manor, according to the MLTC, an additional $35 per bed/day for 25 years Construction Funding Subsidy totalling $40,880,000 is available. Of that, approximately 40 per cent of that funding can be converted to help provide equity for any additional financing required, according to the ministry.
“Unprecedented global and national events, such as COVID-19, inflation, and climbing interest rates, have presented challenges for the funding and development of new projects,” Roseman said. “To qualify, eligible applicants must submit a Statement of Readiness and be ready to begin construction by August 31, 2023.”
Cholly Boland, president and CEO of Rural Healthcare Innovations/Dundas Manor, confirmed Dundas Manor qualified for the additional funding.
“We completed and submitted the readiness form and have been notified that we qualify for the additional subsidy — as long as we stay on schedule and continue to meet all government criteria,” he said. “Whether that funding is sufficient will depend on the outcome of our tendering process and whether our fundraising campaign is successful.”
The redevelopment of Dundas Manor will see the 98-bed facility redeveloped and expanded by 30 beds. The facility will more than double in size with larger rooms, accessible spaces, and all 128 beds will be separate rooms for residents.
In preparation for the redevelopment project, local governments have contributed or pledged long-term commitments.
SDG Counties funded $4-million through council action during the 2018-22 term. South Dundas and North Dundas will each donate $500,000 towards the redevelopment, funded at $50,000 per year per municipality over 10 years.
Dundas Manor has said it needs to raise $11 million through donations towards the project.